State Dept cable 1975-245710

Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 05 JUL 2006

Message Text

LIMITED OFFICIAL USE

PAGE 01 KARACH 00914 211125Z

46

ACTION COME-OO

INFO OCT-01 NEA-10 ISO-OO EB-07 /018W

122197

R 20101 5Z MAY 75
FM AMCONSUL KARACHI
TO SECSTATE WASHDC 8866
AMEMBASSY ISLAMABAD

LIMITED OFFICIAL USE KARACHI 0914

E. O. 11652: N/A
TAGS: BEXP, PK

SUBJECT: MAJOR PROJECT: CHEMTEX/DUPONT PROPOSAL FOR
POLYESTER PLANT

REF: KARACHI 0885

1. BEGIN SUMMARY DURING MAY 19 CALL ON MUMTAZ AHMED AND S.S.H.
ZAIDI, STAFF MEMBERS OF TECHNICAL EVALUATION COMMITTEE FOR
POLYESTER PROJECT, COMMERCIAL OFFICER OBTAINED FURTHER INFORMA-
TION CONCERNING POSITION OF CHEMTEX/DUPONT IN ONGOING SELEC-
TION PROCESS, WHICH AMPLIFIED INFO CONTAINED REFTEL. END SUMMARY

2. AHMED SAID THAT RATHER THAN MAKING FINAL CHOICE OF PARTNER
FOR APPROVAL BY BIM CHAIRMAN RAFI RAZA, COMMITEES HAD
PRESENTED TWO OPTIONS INVOLVING FOUR FIRMS TO RAZA AND TOP
ECHELON OF MINISTRY OF PRODUCTION. WHEN DECISION REACHED

BY RAZA CONCERNING THESE OPTIONS, OR PERHAPS EVEN BEFORE SUCH
DECISION REACHED, FIRMS INVOLVED WOULD BE INVITED BACK TO
PAKISTAN FOR PRICE NEGOTIATIONS.

3. AHMED CONFIRMED ACCURACY OF RAZA STATEMENT TO KARACHI
PRESS DURING MAY 15 VISIT HERE, THAT "NEGOTIATIONS WERE BEING
HELD WITH FOUR FOREIGN FIRMS FOR TECHNICAL COLLABORATION IN
SETTING UP OF BIG POLYESTER PLANT... THE FOUR FIRMS INCLUDE

AN AMERICAN, A JAPANESE, A GERMAN, AND A SWISS GERMAN."

ASKED IF THIS MEANT THAT ICI HAD BEEN EXCLUDED. AHMED SAID
THAT ICI HAD BEEN INVOLVED IN "SHADY DEALINGS" AND HAD NOT
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BEEN INCLUDED IN THE COMMITTEES' RECOMMENDATION SENT TO

Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 05 JUL 2006

Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 05 JUL 2006

ISLAMABAD. NONETHELESS, AHMED WOULD NOT STATE CATEGORICALLY
THAT ICI WAS EXCLUDED SINCE ICI IS KNOWN TO HAVE CONTACTS
AND INFLUENCE AT HIGHER LEVELS THAN THE TECHNICAL OR BID
EL LUATION COMMITTEES.

4. AHMED CONFIRMED THAT DECISION IS NO LONGER IN HANDS

OF ANY ONE IN KARACHI BUT NOW LIES WITH AUTHORITIES IN ISLA-
MABAD. AHMED OPINED THAT CHEMTEX AND TWO OR THREE OTHERS
WOULD BE INVITED BACZDTO KARACHI FOR FINAL PRICE NEGOTIATIONS,
PERHAPS WITHIN NEXT 10 DAYS. WHEN ASKED IF ANYTHING COULD
BE DONE AT THIS POINT BY EITHER U.S. MISSION OR CHEMTEX
PERSONNEL, AHMED RECALLED THAT ICI CHAIRMAN HAD FLOWN TO
PAKISTAN ABOUT THREE MONTHS AGO TO VISIT PERSONALLY
THE PRIME MINISTER. AHMED SUGGESTED THAT U.S. AMBASSADOR
MIGHT CONSIDER VISIT TO P.M. WHEN COMMERCIAL OFFICER
POINTED OUT THAT APPROPRIATE REPRESENTATIONS HAD ALREADY
BEEN MADE SEVERAL WEEKS AGO, AHMED SAID ALL COMPETITORS
HAVE BEEN APPROACHING GOP OFFICIALS IN ISLAMABAD OVER
PAST FEW WEEKS AND, HE THOUGHT, ANOTHER APPROACH BY U.S.
AMBASSADOR WOULD BE ENTIRELY APPROPRIATE.

5. REGARDING ICI OFFER, CONSUL-IN-CHARGE LEARNED OVER WEEKEND
FROM OTHER BUSINESS SOURCES THAT, ICI, AFTER BEING EXCLUDED
FROM FURTHER CONSIDERATION ON "SHORT LIST" OF FOUR COMPANIES
BY COMMITTEE HERE, HAD MANAGED, THROUGH HIGH LEVEL
REPRESENTATIONS IN ISLAMABAD, TO HAVE ITS OFFER REINSTATED

ON SHORT LIST NOW BEFORE RAZA. ICI REPORTEDLY HAS NOW EVEN
AGREED TO TAKE 49 PERCENT MINORITY EQUITY IN ORDER TO ENHANCE
CHANCES, A POSITION WHICH, WE HAVE REASON TO KNOW, ICI HAS
RESIUCED IN PAST.

6. COMMENT: ABOVE INFORMATION FROM LOWER LEVEL PERSONNEL
MORE OR LESS CONSISTENT WITH THAT PROVIDED BY FCCC CHAIRMAN
MAHMOOD AHMED TO CIC, REPORTED REFTEL, EXCEPT THAT SCOPE OF
DECISION LEFT TO ISLAMABAD MAY BE BROADER THAN CHAIRMAN INDI-
CATED AND UP TO FOUR FIRMS MIGHT BE CALLED BACK FOR FURTHER
NEGOTIATIONS. DECISION IN ISLAMABAD ON COMMITTEE
RECOMMENDATIONS EXPECTED SHORTLY SINCE FCCC STILL DETERMINED
OPEN LC'S BEFORE END OF FISCAL YEAR. ICI PROPOSAL

REMAINS UNKNOWN QUANTITY AT THIS TIME BUT APPARENTLY
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ICES INFLUENCE AT HIGHER LEVELS OF GOP NOT INSIGNIFICANT.

7. ACTION RECOMMENDED: A) THAT EMBASSY CONTINUE PRESS CHEMTEX/
DUPONT CASE AT HIGHEST LEVELS. B ) THAT CHEMTEX PREPARE FOR
PROBABLE CALL FOR FINAL PRICE NEGOTIATIONS UNDER HIGHLY
COMPETITIVE CONDITIONS SOON.

BRYANT

Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 05 JUL 2006

Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 05 JUL 2006

LIMITED OFFICIAL USE

NNN

Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 05 JUL 2006

Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 05 JUL 2006

Message Attributes

Automatic Decaptioning: X

Capture Date: 01 JAN 1994

Channel Indicators: n/a

Current Classification: UNCLASSIFIED

Concepts: n/a

Control Number: n/a

Copy: SINGLE

Draft Date: 20 MAY 1975

Decaption Date: 01 JAN 1960

Decaption Note:

Disposition Action: RELEASED
Disposition Approved on Date:

Disposition Authority: ElyME
Disposition Case Number: n/a
Disposition Comment: 25 YEAR REVIEW
Disposition Date: 28 MAY 2004
Disposition Event:

Disposition History: n/a
Disposition Reason:

Disposition Remarks:

Document Number: 1975KARACFI00914

Document Source: CORE

Document Unique ID: 00

Drafter: n/a

Enclosure: n/a

Executive Order: N/A

Errors: N/A

Film Number: D7501 78-0610
From: KARACHI
Handling Restrictions: n/a
Image Path:

ISecure: 1

Legacy Key: Iink1975/newtext/t19750536/aaaabgna.tel

Line Count: 114

Locator: TEXT ON-LINE, ON MICROFILM
Office: ACTION COME

Original Classification: LIMITED OFFICIAL USE
Original Handling Restrictions: n/a
Original Previous Classification: n/a
Original Previous Handling Restrictions: n/a
Page Count: 3

Previous Channel Indicators: n/a

Previous Classification: LIMITED OFFICIAL USE

Previous Handling Restrictions: n/a

Reference: 75 KARACHI 0885

Review Action: RELEASED, APPROVED

Review Authority: ElyME

Review Comment: n/a

Review Content Flags:

Review Date: 18 AUG 2003
Review Event:

Review Exemptions: n/a

Review History: RELEASED <18 AUG 2003 by ellisoob>; APPROVED <03 DEC 2003 by ElyME>

Review Markings:

Margaret P. Grafeld
Declassified/Released
US Department of State
EO Systematic Review
05 JUL 2006

Review Media Identifier:

Review Referrals: n/a
Review Release Date: n/a
Review Release Event: n/a
Review Transfer Date:

Review Withdrawn Fields: n/a
Secure: OPEN
Status: NATIVE

Subject: MAJOR PROJECT: CHEMTEX/DUPONT PROPOSAL FOR POLYESTER PLANT

TAGS: BEXP, PK

To: STATE ISLAMABAD

Type: TE

Markings: Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 05 JUL 2006

Margaret P. Grafeld Declassified/Released US Department of State EO Systematic Review 05 JUL 2006